Within his newly released memoir, titled Ithaki, the former premier Tsipras does not hold back while he reflects on that chaotic period during Greece's debt drama.
An Unconventional Appointment
In the ex-PM's version, he chose the unorthodox academic Varoufakis as his treasury head mainly due to the latter's global profile and his “extremely attractive” abilities as a communicator.
“In reality, he was, in reality, more of a personality and less of an economic expert,” wrote Tsipras.
Conflicting Agendas
Tsipras alleges how Varoufakis possessed a personal agenda which included advancing his publications and testing out his theories on Greece rather than truly fighting for its financial survival.
He wrote how the talks to stave off bankruptcy became “not only a method to secure improved terms for Greece. They became an experiment, a monumental opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
During rollercoaster discussions, the country found itself dangerously on the brink of leaving the eurozone.
At stake lay both the country's future but also those harsh cutbacks demanded in exchange for bailout funds by foreign lenders.
Failed Alternatives
Efforts to find funds elsewhere, such as a desperate plea to Russia to purchase Greek government bonds, went unanswered.
Assisting Greece would be equivalent to throwing money into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Referendum and U-Turn
That summer, those excoriating bailout terms were put to a popular referendum, an action which plunged Europe into deeper existential crisis.
Even though the referendum was won decisively by those against the cuts, Tsipras was forced to ignore the result then agree to a bailout package from creditors that turned out to be tougher.
Final Straw
Tsipras revealed that he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who appeared on the covers of magazines globally … he gave the impression he relished the spotlight.”
After Varoufakis outlined a contingency plan involving creating a secondary currency and issuing vouchers to retirees, the leader knew that it was the end and asked him: “Are you serious?”
Lasting Rebuke
In the book, the author concludes that Varoufakis had proved himself “unfit for an agreement that required intricate and sensitive management.”
Tsipras further wrote that Varoufakis's confrontational style made him more and more alone among peers, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.
This account of history has provoked fury and stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
